A speculator becomes the fixed-rate payer in an interest rate swap. He expects that
A) long rates rise.
B) long rates fall.
C) short rates rise.
D) short rates fall.
C
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The total utilities associated with the first 5 units of consumption of good X are 15, 30, 40, 47, and 50, respectively. What is the marginal utility associated with the third unit?
a. 15. b. 70. c. 85. d. 10. e. 45.
Why does a larger government budget deficit increase the magnitude of the crowding-out effect?
One of the conclusions of the model of monopoly is that the firm earns economic profits above the required opportunity cost of the factors of production. Are these profits lost to society? Do they take spending power from the economy, and act as a brake on economic growth?
Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Mike's opportunity cost of producing one pound of cheese is ________ car(s).
A. 1/500 B. 1/10 C. 1/250 D. 500